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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: kash johal who wrote (109481)	9/8/2000 12:43:51 AM
From: The Duke of URL©	Read Replies (1) \| Respond to of 186894

<A new 12" fab will cost amd around $2bn and expenditures will be spread over 2 years and there will be the lucrative tax credits.> I don't believe it will get that far. Remember, AMD borrowed 2B, short term. That $ is due real soon now. I would be almost sure that that lender has put pressure on AMD to repay that line. Even with AMD's recent recent profitability, they are not making nearly enough to pay that loan off, much less, in addition commit to new capital expenditures. Wouldn't it be fun to find out (and I'm just noodling here) that the lead lender on the line of Credit is US Bancorp, who owns Piper Jaffray, who employs Ashook Kumar??? :)

To: kash johal who wrote (109481)	9/8/2000 7:50:36 AM
From: Dan3	Respond to of 186894

Re: Intel is spending roughly 4-5Bn/yr on capital ex. AMD is well under 1Bn/yr. FASL takes no new cash from AMD. That's the thing about AMD/FASL - a big chunk of the company is a black box that just makes money. Whenever you compare AMD to other companies, it's important to remember that a significant part of AMD's capital investment doesn't show up - like FASL's concurrent expansion of existing FAB space and green field construction of a new FAB. If AMD breaks ground on two new FABs (at Dresden and Austin) while the FASL expansion continues, they will be matching Intel's present multi-year (many forget that) 6-7 billion dollar FAB expansion program. Dan